PSA 0.00% 2.1¢ petsec energy limited

up again and thru the barrier!, page-2

  1. 3,800 Posts.
    jbc, my view is that as a medium term position holder (as oilspec traders invariably are) it doesnt pay to too fussed about daily fluctuations. As long as you have a strategy of when to exit at a price, or for a fundamental reason, worrying about daily fluctuations is the pits. There are many reasons why prices and volumes change on a daily basis and you will never understand them as there are many reasons why people buy and sell. Look at BUY today for example. Someone pushed the price up to 11 cents just to get 100,000 shares. This was someone who either pushed the wrong buy button on Comsec, or doesnt understand the market. They could have picked them up for less if they had sat there in the queue.

    In the current market there are a lot of distressed sellers who at times just push the sell button to get out fast. They can be selling not because they think the specific stock is a dud, but because another stock has given them a margin call and they have to raise cash. So as an outsider how can you worry if your stock is going down for the day instead of up? Over a longer time period, if you have your strategy right, the weight of buying presuure will overcome short term selling blips.

    Nowadays I trade a portfolio of stocks. History tells me there will be four winners out of five. I dont know the loser in advance. So why chew up on the one stock that does badly when it happens?

    Get worried when the whole portfolio starts losing!!


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